This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

State Tax Knife May Slice Amazon, Microsoft

As I write this, the Capitol is swarming with lobbyists. One such man, who asked to not be named, said that every major company -- Amazon and Microsoft included -- has sent in the "big guns" to try to see that such a bill is not passed.

And no wonder.

If the proposed tax changes go through, they're going to cut into the profits significantly -- and there really isn't much room for that. Take Amazon, for instance. It lost $39 million last year. Microsoft is a big money maker -- just under $17 billion in net income for 2012 -- but that was down from $23.2 billion a year earlier.


Corporations always seem to find a way to ease their tax burdens, but there would be no way to get around the proposed tax changes. And investors won't like that very much.

The legislative session in Washington state will close in just a few weeks, so we will have to see what happens -- but if the Democrats successfully pass the proposed tax changes, Amazon, Microsoft and the people who invest in those companies could be in for a rough ride.

Disclosure: The writer holds no positions in any of the companies mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Renee Butler is a freelance financial journalist based in Seattle. She has written hundreds of articles and blog posts on hedge funds, the financial markets, investing trends and company developments. Her articles have appeared on MSNBC, MarketWatch, the Motley Fool, The Street and Seeking Alpha, among others. Butler is a member of the National Press Club and the Society of Professional Journalists, and holds advanced degrees in business, financial management, psychology and sociology.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $415.61 -1.30%
MSFT $46.10 -3.20%
AAPL $124.21 -1.30%
FB $77.63 0.09%
GOOG $522.22 -1.60%

Markets

DOW 17,774.99 -153.21 -0.85%
S&P 500 2,070.05 -19.41 -0.93%
NASDAQ 4,893.7140 -45.6130 -0.92%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs